DCN October Edition 2019

INDUSTRY OPINION
Trade with the Celestial Empire
The Supply Chain & Logistics Association of Australia recently organised a delegation
to China, returning with many insights. By Amanda O’Brien, chair, SCLAA
THE SCLAA HAS JUST COMPLETED
a successful trade mission to China. Back
in November 2018 we were delighted to
be the first association to enter into a
significant memorandum of understanding
with The Australasian International Trade
Association with the implementation of
the Belt and Road Australia-China Supply
Chain and Logistics Alliance. Given recent
media coverage and poor assessment of
what these alliances mean to the wider
business community it has never been more
important to forge closer partnerships with
our number one trading partner China.
China is forecast to top 50% of global
GDP by 2040 and drive 40% of the world’s
consumption.
The alliance will serve its members and
facilitate Australian supply chain and
logistics development and cooperation.
This will include a wide range of services
including conferences, exhibitions, business
consultation, overseas visits, training
programs and will enhance communication
amongst alliance members.
MEETINGS AND MOUS
In China the SCLAA, with AITA, also
signed additional MoUs with peak bodies
including the Tianjin Transportation and
Logistics Association and the TCEA (Tianjin
Cross border E-commerce Association) as
well as others where an alliance of partners
will foster the development of knowledge
across borders and increase potential trade.
There were significant meetings
with the Hebei Federation of Industry
and Commerce, the Tianjin Trade
Promotion Council and a conference
at Cangzhou Municipal Government
as well as discussions with Guangzhou
Port Authorities and the Zhanjiang
Government. A comprehensive briefing
pack will be available to all SCLAA
members in coming weeks.
GRAND PERSPECTIVE
A statistic too hard to ignore is that the
Guangzhou port handles 15m TEU per year
as opposed to our biggest port, the Port of
[L-R]: Liping Zhang (Department of International Relations and Cooperation); Sue Tomic (SCLAA);
Michael Guo (AITA); Lei Biao (United Front Work Department of Guangdong Party Committee and Party
Secretary of Guangdong Federation of Industry and Commerce); Amanda O’Brien (SCLAA); Zhang Hua,
(Guangdong Federation of Industry and Commerce); and Don Nardella
Melbourne that handles 2.5m TEU and may
reach capacity in the next 20-30 years.
Significant development is continuing in
Guangzhou Port with an extended logistics
park facility covering over 340,000 square
metres that will greatly enhance the port’s
ocean-rail transportation capability. It will
have a positive impact on the port’s container
throughput and be operational by 2020.
“EURASIAN BRIDGEHEAD”
The tour and meeting with officials in
Huanghua Port will undoubtedly give
the SCLAA a solid platform to promote
collaboration with Australian industry.
The comprehensive free trade zone of
Huanghua Port is located in Cangzhou Bohai,
a new area of Hebei abutting Huanghua
Port. By means of attracting domestic and
foreign manufacturers and trade circulation,
enterprises will form a fully equipped
logistics infrastructure platform.
Huanghua Port also has plans to build
an additional 209 berths. It has built
200,000 tonnes of deep-water shipping
lanes and has the shortest Eurasia artery
between Huanghua Port and Rotterdam in
the Netherlands, earning it the name of
“new artery bridgehead of Eurasia”.
KEY MEETINGS
SCLAA also met with Bureau Heads of
Tianjin Airport Economic Area where
multiple national strategic opportunities
are available. Its committee manages the
areas that are part of the Tianjin Port Free
Trade Zone, the Tianjin Airport Economic
Area and the Harbour Economic Zone – a
total area of some 284km.
Tianjin is one of the four cities that
report directly to the Central Government
and is the centre of economic growth in
Northern China. More than 150 Fortune
500 companies invest there and over 30,000
enterprises are registered in TAEA. So far
more than 1700 enterprises are registered in
Tianjin Aviation Logistics Park alone.
MEETING WITH SENIOR OFFICIALS
A welcome banquet in honour of the
SCLAA and AITA trade delegation was
held in Beijing, with representatives of the
Chinese Central Government and several
key NGOs.
The SCLAA and delegates also met
with the Australian Trade and Investment
Commission in Guangzhou. The SCLAA
delegation and AITA wzere delighted to
meet with Paul Sanda, Chris Halford and
Geoff Matthews from the Australian
government to discuss issues concerning
the Australian business community and,
more importantly, opportunities given the
current economic climate and critically
important trade relationship between
China and Australia.
SCLAA
20 October 2019
thedcn.com.au